Example: Calendar Year Interpretation of $25K Rule
The system calculates the value of purchases made by a participant in a calendar year and applies the purchase limit to any amount over the $25,000 by adjusting the value so that it is below the limit. For example:
Offering Period: 12 months
Begin: 01/01/1999
End: 12/31/1999
Purchase Periods: 6 months
Begin: 01/01/1999
End: 06/30/1999
Begin: 07/01/1999
End: 12/31/1999
| Date | Activity | Value | Adjusted Value |
|---|---|---|---|
|
06/30/1999 |
Purchase #1 |
$17,500 |
$17,500 |
|
12/31/1999 |
Purchase #2 |
$8,500 |
$7,500 |
|
Calculated Totals |
|
$26,000 |
$25,000 |
The second purchase exceeds the $25,000 limit, so the purchase is adjusted.